The Elmet Group, a U.S. producer of critical materials, is preparing to acquire a substantial stake in a Vietnamese tungsten producer. This strategic move follows a $450 million investment from the United States Department of War (DoW), announced on September 14, 2026. The investment aims to expand Elmet's manufacturing capabilities and secure long-term access to critical raw materials like tungsten and molybdenum, vital for U.S. defense programs and advanced industrial applications.
The Pentagon's investment gives it a near 20% stake in Elmet Group, reflecting a broader effort by the U.S. to diversify its critical mineral supply chains away from China, which currently dominates global tungsten production. Elmet's CEO and Chairman, Peter V. Anania, highlighted that this partnership is crucial for establishing a resilient Western supply chain, from mining and processing to finished components. The $450 million commitment will be funded with an initial $200 million drawdown, with the remaining capital to follow in subsequent tranches.
Elmet plans to use these funds for significant upgrades, including over $165 million for its U.S. manufacturing facilities in Maine, Michigan, and Ohio. Additionally, approximately $150 million is allocated for a joint venture with Blue Moon Metals and EQ Resources to restart and expand ammonium paratungstate (APT) conversion capacity at the Springer Tungsten Complex in Nevada. The new Vietnamese acquisition will further strengthen Elmet's global network, which also includes strategic partnerships and investments in Australia and Spain, coordinating sourcing, refining, and delivery through its new Elmet Refining & Trading (ERT) division to ensure reliable, China-independent tungsten supply for the U.S. and its allies.
